TRADING activity on the Karachi wholesale markets last week remained relatively slow despite fresh fall on some essentials’ counters amid a considerable rise in arrivals from upcountry trading centres.

The pulses sector led the market decline where prices of masoor, masoor dal and gram whole and dal suffered sharp fall on selling followed by steady arrival of new gram crop.

Both the leading commercial houses and brokers kept to sidelines most of the time as no one among them was inclined to chase prices higher hoping that arrivals will get normal in next couple of weeks, dealers said.

What disturbed the most was an increase in prices of wheat despite import of about 2.5m tons and an expected arrival of new crop by next month from Sindh markets.

Normal harvesting of wheat crop is expected by the end of next month and early April both in Sindh and Punjab cotton belts respectively.

According to official surveys by government agencies and private parties, the target of 22m tons is expected to be achieved with margin.

Market sources said future wheat price outlook would be largely set by official procurement operations around official procurement price of Rs1,025 per 40 kg before speculators and stockists lift a good part of the produce from growers offering them higher prices.

Sugar and its allied products also maintained an upward drive despite reports that the TCP would import about 0.2m tons of the commodity to stabilise local prices.

The current price flare-up in sugar beyond Rs40 per kilo is because of a short crop and higher asking prices by sugarcane growers, some others said.

In the absence of fresh exports, rice sector remained dormant as foreign demand did not pick up and much of the activity was said to be of local nature.

However, indications are that the ready position will remain tight as commercial houses are not inclined to play bigger role at this stage apparently awaiting further increase in prices of some essential items, they added.

A sharp rise of Rs125 per bag in wheat caused price flare-up on some other counters also but all other essential items came in for active selling after mid-week and fell sharply lower under the lead of imported types of masoor whole and dal.

While masoor whole was quoted lower by Rs600 per bag, gram whole and gram dal fell by Rs200 to 300 per bag amid active dealer selling. Urad also came in for active selling and was marked sharply lower by Rs375 per bag on selling by commercial houses and so did some other types but ready off-take was light as dealers kept to sidelines awaiting fresh fall in prices.

Among other essentials, sugar remained under pressure as some of the mills released fresh stocks followed by reports that the TCP would import the commodity to ease local prices. It was marked down by Rs100 per bag, while gur rose by Rs200, with desi sugar holding on to the last levels.

On rice counter, IRRI-6 was quoted higher by Rs100-350 per bag on reports of fresh export orders, while IRRI-9 was marked down by Rs200 per bag on selling by commercial houses.

Cereal sector, on the other hand, showed quietly a steady trend as prices of jowar, maize and barley were held unchanged but bajra was an exception, which came in for active selling after reports of steady arrivals from upcountry markets.

Barring a decline of Rs100 in til owing to slack export demand, all major seeds including cotton, and rapeseed were firmly held at last levels amid active trading. But cottonseed was an exception, which rose by Rs25 on pressure on ready supplies.

Oilcakes both cottonseed and rapeseed were traded at last levels followed by reports of decline in crushers’ demand.—M.A.